Today, one of Europe’s leading payment providers, Klarna, has announced its partnership with Arcadia Group to launch ‘Buy Now Pay Later’ in the UK.
The deal sees the fashion giant join forces with one of Europe’s most successful and disruptive ‘unicorn’ fintech companies to offer an innovative new approach to retail financing for today’s on-the-go, time-poor consumers. Buy Now Pay Later delivers the most seamless financing solutions available today for people shopping online and on mobile.
The partnership will give customers of iconic brands such as Topshop and Miss Selfridge the option to buy products online and pay for them over time, without having to fill in lengthy personal details or forms associated with traditional credit application processes. Klarna separates buying from the paying and pre-authorises customers in real time when the order is placed. Customers deemed eligible for credit will then be able to buy products but opt to pay for them later, interest free for up to 90 days.
Recent research from Klarna shows that 67% of UK shoppers have abandoned a basket online, representing an average loss of £37,062 per UK retailer each year. By improving the user experience and offering consumers more flexible payment options, Buy Now Pay Later helps retailers counteract the dropped basket effect, boosting retention, loyalty and sales.
“More consumers are shopping on the go than ever before, but in our fast-paced lives shoppers get frustrated by long and complex checkouts and a lack of flexible payment options. To get ahead, retailers need to offer a simple, hassle free browsing and buying experience that integrates seamlessly into their customers’ lives,” says Luke Griffiths, UK General Manager of Klarna.
“We are excited to offer an innovative solution to one of the biggest challenges UK retailers face, and to be pioneering a new approach to retail financing with some of the country’s biggest brands,” continues Griffiths.
Unlike other financing options, Buy Now Pay Later improves the user experience by offering instant access to credit without redirecting customers away from the online store, allowing the retailers to maintain their own look-and-feel throughout the checkout process. Klarna also ensures legal compliance across all markets – making it easy for online retailers to expand into new markets.
“Being able to Buy Now, Pay Later at the click of a button empowers our customers to shop however and whenever they want. Revolutionising our approach to purchasing and paying will help us boost conversion rates and ensure our customers remain our brands’ biggest fans,” says Richard Burchill of Arcadia.
The new partnership with Arcadia Group is part of a wider global launch of Klarna’s Buy Now Pay Later, which is going live in the US with online retailer shoes.com.